Prices are still up 2.4% from the previous month and are up 23% from the previous year.
Canadian home sales fell from a record in April when a resurgence of COVID-19 cases and lockdown measures slowed the country’s red-hot housing market.
National home sales fell 12.5 percent in April from the previous month, as new listings also fell 5.4 percent, according to a report Monday from the Canadian Real Estate Association. Despite the slowdown in activity, benchmark home prices still rose 2.4 percent in April and 23 percent more than a year ago. Home sales have also increased as much as 256 percent from the previous year, when the market froze at the start of the pandemic.
Canadian housing has soared to records over the past year, as record interest rates and demand for larger living arrangements drove more people to the market. In April, however, much of the country was facing a new wave of new coronavirus infections that forced much of the country to impose new restrictions on activity.
“While the housing markets in Canada remain very active, there is growing evidence that some of the extreme imbalances from last year are beginning to relax, which is what everyone wants to see happen,” said Cliff Stevenson, chairman of the group of real estate agents, in the statement. “Many jurisdictions enacted new closures, making it difficult to get a clear reading of the underlying levels of supply and demand.”
The drop in demand eased market conditions a bit. Canada had about two months of available housing supply, up from a record low of 1.7 months in March, but still well above the long-term five-month average, according to the report.